Malaysia’s Inflation Rate Reached 8-Year High

• Malaysia’s Inflation Rate Reached 8-Year High

The consumer prices in Malaysia climbed the most in 8 years in February, following persistent rise in the cost of goods and services.

Inflation rate rose 4.5 percent year-on-year in the month under review and 1.3 percent from preceding month.

According to the statement released by Bank Negera on Thursday, inflation rate is expected to average between 3 percent and 4 percent in 2017, up from 2.1 percent recorded in 2016.

The statement further highlighted that 2017 will be another challenging year for the nation’s monetary policy.

The central bank left its official cash rate unchanged at 3 percent, the same rate it has been since its July adjustment.

Transport cost rose 17.9 percent in February from a year ago, following a 8.3 percent increase in January.

Food prices which constitutes about 30 percent of the CPI climbed 4.3 percent from a year ago.